Coronavirus: Global stocks surge after U.S. Federal Reserve promises support

Global stock markets and U.S. futures surged Tuesday after the Federal Reserve promised support to the struggling economy as Congress delayed action on a $2 trillion coronavirus aid package.

Tokyo advanced more than 7 per cent and Frankfurt opened 6 per cent higher. London, Shanghai, Paris and Hong Kong also rose.

On Wall Street, futures for the benchmark S&P 500 index and Dow Jones Industrial Average gained 5 per cent.

Traders were encouraged by the Fed’s promise to buy as many Treasurys and other assets as needed to keep financial markets functioning.

On Monday, Wall Street fell 3 per cent after Congress failed to approve an economic support package. It would send checks to U.S. households and offer support for small businesses and the hard-hit travel industry, but Democrats say it favors companies too heavily at the expense of workers and public health.

“Asian investors like what they see from an all-in Fed which is being viewed in a very impressive light for both Main and Wall Street even as the U.S. congress dithers,” said Stephen Innes of AxiCorp. in a report.

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